January 28, 2021

Company name:
Representative:

Inquiries:Tel:

ES-CON JAPAN Ltd.
Takatoshi Ito, President &Representative Director(TSE 1st Section, code: 8892)
Minoru Nakanishi,
Senior Managing Director+81-3-6230-9308

Notice on Formation of Private Fund and Silent Partnership Investment
ES-CON JAPAN Ltd. (ES-CON JAPAN) announces that it will form the GK Odakyu Isehara Ekimae
Sakuradai Development Project (the “SPC”) as rental apartment development fund and carry out silent
partnership investment in the fund, following GK Kamikitadai Ekimae Development Project, GK Fujisawa
Development Project（press release announced on September 25, 2020 *1) and GK Keio Inagi EkimaeDevelopment Project（press release on December 2, 2020 *2）. Details are as follows.
1. Background and Overview of Silent Partnership Investment
The SPC will carry out the Odakyu Isehara Ekimae Sakuradai Development Project (the “Property”) andoperate the Property as rental apartment after the completion of building. The SPC will grant preferential
negotiation right (the “Preferential Negotiation Right”) to ES-CON JAPAN to let ES-CON JAPAN or a party
designated by ES-CON JAPAN preferentially acquire the Property during a certain period.
In this year, ES-CON JAPAN Group plans to form and commence operation of a private real estate
investment corporation (private REIT (ES-CON Private REIT (tentative name))) with ES-CON AssetManagement Ltd. (EAM), a consolidated subsidiary of ES-CON JAPAN, as the party entrusted with asset
management, and ES-CON JAPAN is scheduled to exercise the Preferential Negotiation Right for ES-CON
Private REIT (tentative name).
Under this project, EAM will be entrusted with arrangement, and both Reonas Investment Corporation(Chiyoda-ku, Tokyo; President & Representative Director: Akihiko Sato) and EAM will be entrusted withasset management (advisory and agency).
Even under the current uncertain circumstances amid the COVID-19 crisis, the rental apartment market
remains strong, and ES-CON JAPAN believes that stable needs can continue to be expected. ES-CON
JAPAN continue to aim for a private REIT composition by utilizing know-how on condominium development,a strength the ES-CON JAPAN Group possesses.

2. Overview of the Property
Odakyu Isehara Ekimae Sakuradai Development ProjectTypeRental apartment
Location
1-499-1, 2, 5 Sakuradai, Isehara-shi, KanagawaAccess
2-minute walk from Isehara Station on the Odakyu Odawara Line
Site area
659.88 m2
Total floor area
4,001.36 m2 (planned)
StructureRC, 14F (planned)
Asset size
1,930,000,000 yen (based on appraisal value assumed at the time of completion)

3. Overview of the SPC
Name
GK Odakyu Isehara Ekimae Sakuradai Development Project
Location of head
Inside Silsphere Accounting Firm,
office1-6-15 Hirakawacho, Chiyoda-ku, Tokyo1

Title and name ofrepresentative
CapitalEstablished
Relationship withES-CON JAPANGroup

Representative: General Incorporated Association Odakyu Isehara Ekimae Sakuradai
Development
Takafumi Inaba, Functional Manager
100,000 yen
December 15, 2020
・ ES-CON JAPAN will carry out silent partnership investment of 10 million yen inthe SPC.
・ ES-CON JAPAN will acquire the Preferential Negotiation Rights as described in
4. below.
・ ES-CON JAPAN will be entrusted with construction management from the SPC.
・ EAM will be entrusted with fund formation arrangement for the SPC.
・ EAM will be entrusted with asset management (advisory and agency) for theSPC in cooperation with Reonas Investment Corporation.

4. Details of the Preferential Negotiation Right
Contracting party GK Odakyu Isehara Ekimae Sakuradai Development Project
Date ofJanuary 27, 2021
conclusion ofcontract
Main content of
ES-CON JAPAN or a party designated by ES-CON JAPAN can preferentiallyagreement
acquire the Properties if certain requirements are fulfilled during the period until
end of July, 2024. (ES-CON JAPAN plans to exercise the Preferential Negotiation
Rights for ES-CON Private REIT (tentative name).)
SPC asset
Reonas Investment Corporation
management
ES-CON Asset Management Ltd.
SPC arrangement ES-CON Asset Management Ltd.

5. Overview of Companies
Overview of EAM
Name
Location of head
officeRepresentative
Line of business

CapitalEstablished

ES-CON Asset Management Ltd.
The Okura Prestige Tower 20F,
2-10-4 Toranomon, Minato-ku, Tokyo
Satoshi Omori, President & Representative Director・ Asset management for listed REITs and ES-CON JAPAN REIT・ Investment management and advisory agency concerning real estate funds
・ Arrangement for real estate funds
・ Type II financial instruments business
100,000,000 yen
July 2014

Overview of Reonas Investment Corporation
NameReonas Investment Corporation
Location of head
Hitotsubashi Building 3F, 2-6-3 Hitotsubashi, Chiyoda-ku, Tokyo
officeRepresentative
Akihiko Sato, President & Representative Director
Line of business・ Formation and operation of funds investing in solar power plants
・ Formation and operation of real estate funds
・ Type II financial instruments business・ Investment advisory and agency
Capital100,000,000 yen
EstablishedMay 2018

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6. Impact on Financial Results
There will be minimal impact on the consolidated financial results of ES-CON JAPAN Group.
*1 For details on the Formation of private funds and silent partnership Investment in GK KamikitadaiEkimae Development Project and GK Fujisawa Development Project, please refer to the "Notice onFormation of Private Fund and Silent Partnership Investment" announced on September 25, 2020.
*2 For details on the Formation of private funds and silent partnership Investment in GK Keio Inagi
Ekimae Development Project, please refer to the "Notice on Formation of Private Fund and SilentPartnership Investment" announced on December 2, 2020.

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